The Watch List
OPEC + / Resurgence in Energy Prices
- OPEC + announced yesterday voluntary production cuts of more than 1 million barrels/day, starting in May 2023. Oil is spiking on Monday morning in response. Will this result in higher summer gasoline prices i.e., retesting $4/gal, impact to Federal Policy?
Brazil Weather
- There are reports of worsening dry conditions in Brazil that could negatively affect the “safrinha” – or second crop of corn harvested in June/July.
Prospective Plantings
- Soybean planting intentions from last week were flat and corn still reigns supreme. Implications for the ramp-up in renewable diesel production as new projects come on line?
The Week Ahead
Monday, 4/3
- ISM Purchasers Manufacturers Index
- USDA Weekly Export Sales and Livestock and Meat International Trade Data reports
Tuesday, 4/4
- Census Bureau reports February Construction Spending Data
- BLS February Job Openings and Labor Turnover Survey
Wednesday, 4/5
- Branded food company Conagra (NYSE: CAG) reports earnings
Thursday, 4/6
- Lamb Weston (NYSE: LW), a leading potato processor, reports earnings
- Department of Labor reports Initial Jobless Claims
Friday, 4/7
- USDA U.S. Agricultural Trade Data Update
- BLS releases March Payrolls report
- Equity markets closed for Good Friday
Numbers of Interest
+7.7% Last week’s % change in Cotton prices
-39% Percentage yr./yr. decrease in Chapter 12 farm bankruptcies in 2022 to 169 filings; 10 year peak level was 595 in 2019.
$123 Million Amount the USDA is providing to distressed farm borrowers under the Inflation Reduction Act. Total provided under the program now totals $900 million.
$128 Billion Following the recent failures of Silicon Valley Bank and Signature Bank, the FDIC will propose a “special assessment” on the industry in May to replenish a $128 billion deposit insurance fund used to refund bank customers.
$240 Billion Cost of Chinese government bailouts of “Belt and Road” projects, 80% of which occurred between 2016 and 2021
Equity Performance as of March 31, 2023
Kenneth Scott Zuckerberg is Lead Industry Analyst, Grains, Farm Supply & Biofuels, CoBank.
